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Posted Thu, 04 Nov 2021 17:19:10 GMT by Joz Wells
I have been self employed and a sole trader for over 20 years. My wife wants to go self-employed freelance doing her own work in the New Year, but would also be doing some admin, office and IT work for me about 10-15 hours per week. I would like her to invoice me on a monthly basis for the total hours done so I can pay her. Can I claim this as an expense? What she earns though me would be declared on her self assessment tax return. I do not want to have to set up PAYE. Is there a legal or acceptable limit per month how much I can pay her or she can work for me as an independent self-employed person for freelance contract work each month without having to set up PAYE? I do not want to go via the partnership route yet unless her hours need to be increased above such a legal limit or at least until the beginning of the next tax year April 6th 2022. Any clear advice on this would be very much appreciated. Thank you.
Posted Fri, 05 Nov 2021 15:39:53 GMT by HMRC Admin 20
Hi Joz Wells
Please see guidance here:
BIM47080 - Specific deductions - staffing costs: staff training & development
as if there is a relationship between yourself and the person who does the admin then the expense may not be wholly and exclusivley for work and would therefore be disallowable.

Thank you.

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